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Cost comparison against voice charges to mobile phones

Mobile Sales Force: A company with a mobile sales team of 35 reduce their office telephone costs by 58.36% through replacing some of their sales force communications with SMS messaging.

By replacing some of the telephone calls to each sales person with SMS Text Messaging the saving potential is a minimum of £1,853 pounds per year (depending upon mobile network). 

This figure does not include the additional benefits associated with being able to contact all the sales force in one communication instead of phoning each in turn, leaving voice mail messages and other back office benefits.

Calculations
The sales administrator and sales manager contact each sales person on average five times a day providing information requested by customers or requesting information from the sales team.

The analysis and assumption made for this business case was that only 40% of these calls will be replaced by a SMS Message and each replaced phone call lasts only one minute.

This results in a total 43,750 telephone calls to the sales team per year, with an estimated 17,500 replaced by SMS messages (40% of the total). The total cost of the replaced voice calls is between £3,308 to £3,968 depending upon mobile network used.

The sales company purchases the minimum number of credits to replace these calls with SMS messages - total cost £1,377.50 (one 10,000 credits pack, seven 1,000 credits packs and one 500 credits packs)

Example using costs from cheapest BT to mobile network

Notes: All comparisons are based upon the BT call charges to mobile phones dated 29th May 2003 and are based upon the following assumptions.

1. Call to mobile user lasts one minute (can be longer if the recipient is not ready to write down information being communicated)

2. Call rates are in pence per minute. Minimum call charges or set-up fee apply. The prices in these examples are for example only and are subject to change. Every effort is made to ensure that the price comparisons are correct but if you require information on cost savings then please contact us at solutions@websetters.co.uk for details.

3. Information to be communicated is contained within one SMS message.

4. No consideration is made of the real people costs that can be saved in phoning the recipients which is often takes be longer than sending a SMS message. This is especially so if a number of mobile workers or clients need the same information. Each has to be phoned individually while a single SMS can be distributed to many recipients.

5. No consideration is made on the further savings or increased business that can be achieved through communicating with people in a cost efficient and reliable manner